Trade of the Day: NZD/JPY

By: Dima Chernovolov

NZD/JPY recently broke the key resistance level 82.66, which was previously identified by Autochartist. Autochartist rates the significance of this resistance level at the 3-bar level – which is the result of the three earlier reversals from this price level.  NZD/JPY is expected to rise toward the forecast price 83.49.

As can be seen from the daily NZD/JPY chart below – the pair earlier reversed up from the major support area located between the long-term support level 81.00 (which has been reversing the price from the end of September) and the lower daily Bollinger Band. The proximity of this support area adds to the probability AUD/JPY will continue to rise toward the forecast price 83.49.